Obama administration says student debt helps, not hurts the U.S. economy

[hashmander]

the interest rate on federal student loans is pretty low though. same people have no problem paying 8% to get some used newish camaro and pay $280 a month. i think PAYE is a good attempt to make the the current system we have more fair. i think they should extend it to pre 2009 federal loans as well so the older folks can get in on the goodness that the post 2009 loanees have been taking advantage of (the smart ones at least).

 

[Scoop]

the interest rate on federal student loans is pretty low though. same people have no problem paying 8% to get some used newish camaro and pay $280 a month. i think PAYE is a good attempt to make the the current system we have more fair. i think they should extend it to pre 2009 federal loans as well so the older folks can get in on the goodness that the post 2009 loanees have been taking advantage of (the smart ones at least).

8% is super high compared to what the current Fed interest rate is: 0.5%.

 

[TLR Is Mental Poison]

When you look at our debt situation

US GDP has grown by 2 trillion over the last decade.... total public debt (federal, state, local) has grown by 8

Throw consumer debt in the mix

Obviously a fiat currency operates on debt, but it's worrisome that so much of that debt, and by extension economic activity, is in the public sector. W/o govt deficit spending the US economy is shrinking at over 6% a year

Government Debt Chart: United States 2007-2016 - Federal State Local Data

To be fair the bleeding is slowing.... but not stopped.

 

[TLR Is Mental Poison]

8% is super high compared to what the current Fed interest rate is: 0.5%.

And you can't declare bankruptcy on that

Wonder how much student loan debt is helping to close the federal deficit

 

[hashmander]

8% is super high compared to what the current Fed interest rate is: 0.5%.

Interest Rates and Fees

 

[TLR Is Mental Poison]

Still crazy high, especially for a loan you can't default on. Student loans should be a direct line to the Fed.... after all, it's good for the economy

 

[Scoop]

Interest Rates and Fees

So 7 to 13 times the Fed's target interest rate. What's your point?

 

[Lifer11]

Very convenient timing considering Bernie, Hillary, and Trump have all pushed for either free college or drastically reduced tuition.

 

[hashmander]

So 7 to 13 times the Fed's target interest rate. What's your point?

that it's not 8%, right now it's 3.76%

 

[Red Shield]

We truly are at the tail end of this ride. Half the country doesn't know its ass from its elbow and is to stupid to realize how stupid it is. The other half is so sensitive it's borderline paralyzed by it's retardation. Both sides are getting played. 100% of the population is hell bet on its own destruction, even those making the money fail to realize that they are creating bubble after bubble that will ultimately end in a purge type of revolution. When you have all the money but there's only 100 of you and theirs BILLIONS of everyone else, that has historical proven to lead to decapitations in town squares.

The people making the money know what the bubbles they've created.. will lead to


and don't you worry.. they have plans for what to do with the billions of everyone else

 

[Brown_Pride]

The people making the money know what the bubbles they've created.. will lead to


and don't you worry.. they have plans for what to do with the billions of everyone else

So did the kings and queens and rulers of past civilizations. At some point the anger of billions people > the billions of dollars of a few.

 

[Red Shield]

So did the kings and queens and rulers of past civilizations. At some point the anger of billions people > the billions of dollars of a few.

kings and queens of past civilizations didn't have the means to kill millions quickly

 

[Brown_Pride]

kings and queens of past civilizations didn't have the means to kill millions quickly

and yet they managed...

 

[Reality]

What up nikkas? I got good news for yall. That $100k in student debt you have? Yeah you're doing the country a solid w/ that shyt--I mean you really doing some good shyt with that. Now hold up, before you get pissy lemme explain.

There are two types of muhfukkas in this world. Broke ass nikkas who'll always be broke, and smart muhfukkas like you who aren't afraid to spend a lil money to make some money. Aha! And that's why we fukks witchu.

Aight so you may be sayin, yo, how is being $100k in debt a good thing? It don't feel like a good thing. Don't be so short-sighted lil nikkas. It's actually GREAT.

First off, being $100k in debt makes it so you gotta work hard and long as fukk-- on some productive shyt. That's great for your work ethic and even better for your employer because he ain gotta worry about a muhfukkas gettin uppity and trying to have work life balance or spend more time with their families and stupid shyt like that .

It's even better for my nikkas on Wall Street (shout out to the real ones who helped write this report) cuz most of that extra paper you make tryin to hustle to avoid defaulting on your shyt and having your credit / path to financial independence ruined goes to them. And yall know you wouldn't have jobs if they weren't creating them.

So be grateful. That $100k debt is a blessing in disguise. Without it, we know y'all wouldn't work as hard and that extra couple hundred billion dollars in economic productivity *rolls blunt...chuckles to self* wouldn't flow to the bottom line of the corporations you work for and into the pockets of CEOs and hedge fund managers....and then back into jobs of course.

Those of you who are doing your part though.

 

[CodeBlaMeVi]

As brutal as it sounds from a pure economic standpoint, I can see this being true, but this is not good long-term.

In theory they're right but the high wage opportunities for this to make sense is when opportunities are at a surplus.